The main legal point established in the judgment is the importance of proper adjudication before raising attachments under the TNPID Act and the need for expeditious disposal of cases to protect the interests of depositors.

JUDGMENT :

(Prayer : Civil Miscellaneous Appeal filed under Section 11 of TNPID Act, against the Judgment and Decree dated 30.05.2013 made in O.A.No.19 of 2010, passed by the Special Judge under TNPID Act, Chennai.)

The Fair and Decreetal order dated 30.05.2013 passed in O.A.No.19 of 2010 is under challenge in the present Civil Miscellaneous Appeal.

2. The authority competent under the Tamil Nadu Protection of Interests of Depositors [In Financial Establishments Act] 1997, ['TNPID Act] is the appellant, questioned raising of the attachment passed by the Government in G.O.Ms.No.585, Home (Police XIX) Department dated 27.07.2009.

3. The learned Additional Government Pleader appearing on behalf of the appellants contended that one M/s.Sri Dhanalakshmi Finance, consisting of 15 partners, collected huge amount of deposits from various depositors, who all are public in general. On demand, the said M/s.Sri Dhanalakshmi Finance was unable to return the matured deposits to the depositors and the amount of deposit collected is running more than a sum of Rs.15 Crores. During the year 2006, the bonafide depositors preferred a complaint before the District Crime Branch, Thiruvannamalai and the case was registered in Crime No.5 of 2007 and subsequently, it was transferred to the Economic Finances Wing-II, Vellore. The Inspector of Police, Economic Offence Wing-II, identified the movable and immovable properties belongs to the financier and based on the investigation, the Government invoking the powers under Section 3 of the TNPID Act, issued Government Order in G.O.Ms.No.585, Home (Police XIX) Department dated 27.07.2009. Accordingly, several items of properties were attached as detailed in the Government order.

4. The respondent/Financier/3rd Accused filed an application for raising the attachment issued in G.O.Ms.No.585, Home (Police XIX) Department dated 27.07.2009.

5. The Special Court adjudicated the issues. The Special Court made a finding that Item Nos.1 and 3 in Ex.P7 and Ex.P6 stands in the name of the Financier and the attachment cannot be raised as far as those items of properties are concerned. In respect of Item Nos.2, 4 and 5 in Ex.P5 & Ex.P3, the attachment was raised on the ground that those items are joint family properties. The said assets were created much prior to the establishment of the Finance Company by the Accused persons.

6. However, it is contended by the learned Additional Government Pleader that there was no adjudication at all with reference to these findings. Documents were not verified. The Financiers were not produced. Witnesses were not examined and therefore, such a finding arrived by the Special Court is untenable and not in consonance with the very purpose and object of the Act. Further, if such attachments are raised without proper adjudication, the interest of the depositors would be in peril. It is contended that based on the improper and insufficient enquiry, the Special Court raised the attachment in respect of the properties in Item Nos.2, 4 and 5 in Ex.P5 & Ex.P3. Therefore, the order is liable to be scrapped.

7. The learned counsel appearing on behalf of the respondent made a submission that the attachment was raised only in respect of three properties and those properties are no way connected with the depositors or the money collected from the depositors Those properties were not purchased from and out of the amount collected from the depositors and therefore, the Special Court is right in raising the attachment.

8. This Court is of the considered opinion that the very Enactment namely Tamil Nadu Protection of Interests of Depositors [In Financial Establishments Act] 1997, speaks about Statement of objects and reasons. The said statement of objects and reasons reveals that the Act was enacted by the Government of Tamil Nadu to protect the interests of the depositors, who have lost their hard-earned money in the Financial institutions. At present, there is no provision in the said Act for attaching the p